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Two-period nonuniform net present worth (NPW) calculator

Net present worth is calculated as −C0 + CF1/(1+i) + CF2/(1+i)^2. Use the stated system boundary and matching input units.

NPW=−C0+CF11+i+CF2(1+i)2\mathrm{NPW} = -C_{0} + \frac{\mathrm{CF}_{1}}{1 + i} + \frac{\mathrm{CF}_{2}}{\left(1 + i\right)^{2}}

Calculator

Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.

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Worked example

Given

  • C0C_{0} = 20,000 $
  • CF1\mathrm{CF}_{1} = 12,000 $
  • CF2\mathrm{CF}_{2} = 14,000 $
  • ii = 0.08 —
NPW=−20,000+12,0001+0.08+14,000(1+0.08)2≈3,114\mathrm{NPW} = -20{,}000 + \frac{12{,}000}{1 + 0.08} + \frac{14{,}000}{\left(1 + 0.08\right)^{2}} \approx 3{,}114

Symbols and units

SymbolMeaningUnit
NPW\mathrm{NPW}net present worth$
C0C_{0}initial investment$
CF1\mathrm{CF}_{1}year-one net cash flow$
CF2\mathrm{CF}_{2}year-two net cash flow$
iidiscount rate—

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Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.